Value is key
I would have bought a 2Gb $100.00 mini-iPod, but I see what Apple is trying to do. Right now many of the sub 512mb cost at least 150.00. So how could Apple produce a system that is 8x the size, smaller than most for less? I suddenly realized that the market may really support this new mini-iPod.
Now the Wallmart shopper who is looking for the cheapest Mp3 player possible is not going to buy even a $100.00 iPod if there is a $80.00 Rio, but Apple isn't trying to sell to that shopper because Apple will never be able to. This person will make the conscious decision to buy the cheapest item possible with a total disregard towards quality. But quality is important and is part of the value equation. Apple's new mini-iPod is expensive, but not out of the market and not a failure of the imagination, rather it is an acknowledgement that they can't secure and don't really want to secure every possible market, but rather want to secure the much larger middle-and-higher-end markets. Also, I think you will see a cheaper version of the mini-iPod as the new drive prices drop, same thing happened with the 5GB iPod.
As for the others, only the Rio Karma is remotely usable, and even it could be better, the Samsung Napster, the Dell DJ, and many of the small flash players are still hard to use, don't use AAC or do use WMP which blows. So iPod still the best, mini-iPod cool, but could be cheaper. But writing a letter to complain, tell you what get a savings account. By the time you have enough, there will be a $200.00 version or a 10GB.
What's the real lesson:
Never be a first adopter. The bleeding edge is just that.